Cardoso Blames Redesign Policy For Naira Scarcity …Pledges Overhaul

The Governor of Central Bank of Nigeria (CBN), Yemi Cardoso, has admitted a critical flaw in the recent naira redesign policy, and attributed the current cash scarcity to what he called its “bad implementation” of the policy.
Making this known, midweek, during the launch of the World Bank Nigeria Development Update, Cardoso noted the “glaring defects” in various CBN policies and announced a comprehensive review initiative.
“We are taking a thorough look at all our policies implemented over time”, he stated.
This review, he explained, aims to produce “an elegant document” outlining clear rules and procedures for navigating the Nigerian money market.
Addressing the cash crunch plaguing Nigerians, Cardoso identified the poorly executed naira redesign as the primary culprit.
“The apprehension surrounding the policy’s end date, well before the third quarter, triggered widespread hoarding. Many feared the old notes would lose legal tender status, prompting them to hold onto their cash”, he explained.
Cardoso, however, expressed hope, citing the Supreme Court’s recent ruling upholding the validity of the old notes beyond the initial deadline.
He said this would help alleviate apprehensions and incentivize individuals to release their hoarded cash into circulation.
Speaking on the current naira scarcity, Cardoso said, “unfortunately, the history of that lies with the naira redesign policy and coming to the end of the year, way before the third quarter, there was a lot of apprehension with respect to where this was all going to end; and whether the old currency would no longer be good for legal tender and many started hoardings.
“This is really what happened. Happily, Supreme Court has decided that the currency will be valid post-end of the year”, he said.